Guilty verdict for $15m fraud - Rotorua woman to spend Xmas in jail | Rotorua News | Local News in Rotorua
Guilty verdict for $15m fraud - Rotorua woman to spend Xmas in jail
Lee and Bill Papple
By KELLY BLANCHARD in Rotorua
A Rotorua woman has been found guilty of defrauding dozens of people throughout New Zealand with "ridiculous" get-rich-quick schemes.
Lee Papple will spend Christmas behind bars while she awaits her fate after a two-year investigation by the Serious Fraud Office and a three-and-a-half week trial in the Rotorua District Court.
Her Australian business partner, Tina West, has also been found guilty of taking $14.6 million from members of the public, but the jury failed to agree on a verdict for Mrs Papple's husband Bill Papple.
Judge James Weir refused to grant bail to 50-year-old Mrs Papple and 45-year-old Ms West, remanding them in custody until sentencing on January 28.
He told the court it would not be appropriate to grant them bail because they both faced substantial prison sentences.
Mr Papple, who is 68, has been released on bail for a new trial date to be set next year.
There were emotional scenes as the jury returned the verdicts about 5pm yesterday, after spending a day-and-a-half deliberating.
A small crowd of the trio's supporters were in court when the verdicts were read.
The jury's forewoman broke down in tears as she read the verdicts and at least two other members of the jury were crying.
Mrs Papple also cried as the verdicts were read but Ms West appeared emotionless.
Mr Papple was hugged by family members and friends after his wife and Ms West were taken away by prison staff.
The court heard that for two years, from 2000 until 2002, Mrs Papple and Ms West ripped off more than 120 people, mostly from the Bay of Plenty.
Their victims included Northland Maori health and social services agency Te Hau Ora O Tai Tokerau, which invested $100,000 of taxpayers' money; several high-profile Auckland businessmen; a church leader; a bank manager; and a policeman.
Many were family, friends or involved with the Papples through the Mormon church in Rotorua.
Investors were told varying stories, but with similar themes. They were offered interest rates of up to 100 percent a month, and most were told their principal sums were guaranteed.
According to the Serious Fraud Office, around half the money was used to pay investors supposed interest payments, a quarter was spent on personal items such jewellery and property, and the rest was invested in "crazy schemes that failed miserably". The investments were mostly found on the internet.
Over two years, Mrs Papple spent more than $2 million on personal items, despite the fact that before 2000 she and her husband lived in rented accommodation and their only asset was a $50,000 section at the Rotorua lakefront.
Her spending spree included:
$1.4 million on building and furnishing a Matipo Ave mansion in Rotorua;
$260,000 on general living expenses;
$186,000 on travel and accommodation;
$33,700 on jewellery;
$60,000 on art;
$7260 on a cloak; and
$279,000 on a house for her son.
Mr Papple's defence was that he believed his wife was investing the money in legitimate overseas schemes. He told the court he did not condone his wife's actions.
The trio collectively faced six counts of fraud.
The main charge was that they conspired to defraud investors of $14.6 million.
There was a mix of verdicts for the remaining five counts, which were of a less serious nature.
On a charge of defrauding the Fortunes from Otago, Mrs Papple was found guilty while Mr Papple was found not guilty.
On a charge of defrauding a South Auckland church of $100,000, Mrs Papple was found guilty, while Mr Papple and Ms West were found not guilty.
On a charge of defrauding $20,000 from a high-flying Auckland businessman, who has interim name suppression, Ms West was found guilty while the Papples were found not guilty.
The jury could not reach verdicts on whether the Papples obstructed the Serious Fraud Office by failing to supply information. They will be retried on these counts.
Tomorrow in Post Weekend: the heartbreak of trusting Lee Papple.
A Rotorua woman has been found guilty of defrauding dozens of people throughout New Zealand with "ridiculous" get-rich-quick schemes.
Lee Papple will spend Christmas behind bars while she awaits her fate after a two-year investigation by the Serious Fraud Office and a three-and-a-half week trial in the Rotorua District Court.
Her Australian business partner, Tina West, has also been found guilty of taking $14.6 million from members of the public, but the jury failed to agree on a verdict for Mrs Papple's husband Bill Papple.
Judge James Weir refused to grant bail to 50-year-old Mrs Papple and 45-year-old Ms West, remanding them in custody until sentencing on January 28.
He told the court it would not be appropriate to grant them bail because they both faced substantial prison sentences.
Mr Papple, who is 68, has been released on bail for a new trial date to be set next year.
There were emotional scenes as the jury returned the verdicts about 5pm yesterday, after spending a day-and-a-half deliberating.
A small crowd of the trio's supporters were in court when the verdicts were read.
The jury's forewoman broke down in tears as she read the verdicts and at least two other members of the jury were crying.
Mrs Papple also cried as the verdicts were read but Ms West appeared emotionless.
Mr Papple was hugged by family members and friends after his wife and Ms West were taken away by prison staff.
The court heard that for two years, from 2000 until 2002, Mrs Papple and Ms West ripped off more than 120 people, mostly from the Bay of Plenty.
Their victims included Northland Maori health and social services agency Te Hau Ora O Tai Tokerau, which invested $100,000 of taxpayers' money; several high-profile Auckland businessmen; a church leader; a bank manager; and a policeman.
Many were family, friends or involved with the Papples through the Mormon church in Rotorua.
Investors were told varying stories, but with similar themes. They were offered interest rates of up to 100 percent a month, and most were told their principal sums were guaranteed.
According to the Serious Fraud Office, around half the money was used to pay investors supposed interest payments, a quarter was spent on personal items such jewellery and property, and the rest was invested in "crazy schemes that failed miserably". The investments were mostly found on the internet.
Over two years, Mrs Papple spent more than $2 million on personal items, despite the fact that before 2000 she and her husband lived in rented accommodation and their only asset was a $50,000 section at the Rotorua lakefront.
Her spending spree included:
Mr Papple's defence was that he believed his wife was investing the money in legitimate overseas schemes. He told the court he did not condone his wife's actions.
The trio collectively faced six counts of fraud.
The main charge was that they conspired to defraud investors of $14.6 million.
There was a mix of verdicts for the remaining five counts, which were of a less serious nature.
On a charge of defrauding the Fortunes from Otago, Mrs Papple was found guilty while Mr Papple was found not guilty.
On a charge of defrauding a South Auckland church of $100,000, Mrs Papple was found guilty, while Mr Papple and Ms West were found not guilty.
On a charge of defrauding $20,000 from a high-flying Auckland businessman, who has interim name suppression, Ms West was found guilty while the Papples were found not guilty.
The jury could not reach verdicts on whether the Papples obstructed the Serious Fraud Office by failing to supply information. They will be retried on these counts.
Email
Print